Work

Does Belt and Road Initiative attract Cross‐Border M&As from other countries?

Year: 2023

Type: article

Abstract: This article examines how the Belt and Road Initiative (BRI) affects Cross‐Border M&As (CMAs) inflows to countries along the Belt and Road routes (BRI countries) from non‐BRI countries. We conduct a difference‐in‐differences estimation with a control group constructed through propensity score matching. We find that the BRI significantly reduces CMAs from non‐BRI countries to BRI countries. The results are robust to various concerns and specifications. We uncover two important mechanisms driving the results: the increased CMAs within BRI countries and the potential debt risks. We also find heterogeneous effects across countries.

Source: World Economy

DOI: 10.1111/twec.13489

Authors: Chaoqun Zhan, Hanxi Wang, Chenxue Hou

Institutions: Hong Kong Baptist University, Chinese University of Hong Kong, University of Bristol

Language: English

Topic: Belt and Road Initiative

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Partnerships for the goals, Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,240